Ramky Infrastructure Limited

RIL has shown improvement in scale of operation marginally in FY25 to ₹2,094 crore (FY24: ₹2,044 crore) considering execution of orders on hand and the addition of new orders. PBILDT moderated slightly to ₹461 crore in FY25 from ₹498 crore in FY24 with a margin of ~22% (FY24: 24%). Profit after tax (PAT) stood at ₹265 crore in FY245 against ₹360 crore in FY24. Sizeable orderbook position though concentrated with in-house/group orders

As on March 31, 2025, RIL has an outstanding orderbook of ₹7,800 crore (March 31, 2024: ₹8739 crore), which is ~3.72x of gross billing of FY25 which further indicates medium-to-long-term revenue visibility. As on March 31, 2024, ₹4533.09 crore (52.10%) of the orderbook consists of O&M income which will be realised in 15-20 years. Thus, the outstanding orderbook ₹4,186.21 crore (excluding O&M income) to gross billing of FY24 translates to 1.96x, which indicates medium-term revenue

The raw material cost and sub-contracting cost form a major portion of RIL’s total cost of sales. Concrete, sand, steel, and cement are the major inputs for construction entity, prices of which are volatile. RIL has in-built price escalation clauses in the majority projects, which partially diminishes the risk of an increase in cost of sales. The company has a healthy gross block of ₹280 crore, which is entirely debt-free. The company has been adding equipment as and when required. Aforesaid siz

RIL was incorporated in 1994 and has a track record of 28 years in construction and infrastructure projects in sectors such as water and wastewater, transportation (including terminals), irrigation, industrial construction (including SEZs and industrial parks), power transmission and distribution, and buildings (including residential, commercial , and retail property). Yancharla Ratnakar Nagaraja is the company’s managing director. He has a bachelor’s degree in civil engineering from Karnataka U

The company has stretched payments to creditors in FY24, and has supported the SPV’s/subsidiaries by extending credit for work done as EPC contractor for them. RIL has extended loans of ~₹118 crore to subsidiaries in FY24 and also repaid loans to group entities of ₹46 crore. The company has taken arbitration amount from NHAI of ₹98 crore, which was paid to SBI as it is, though this has reduced the company’s working capital utilisation, and such reduction in limit has resulted in tightly matched

Environment, social, and governance (ESG) risks: Not applicable Applicable criteria Definition of Default Liquidity Analysis of Non-financial sector entities Rating Outlook and Rating Watch Financial Ratios – Non financial Sector Withdrawal Policy

RIL has a presence in public-private partnership space through SPVs or its subsidiaries. While many of such assets have been monetised/written-off, they continue to have investments in many assets by way of direct investments or through loans in the form of ICDs. Such exposure put together results in the aggregate amount of ₹963.37 crore as on March 31, 2024 (₹845.17 crore as on March 31, 2023). In addition to the above-mentioned exposure, the company has extended significant amount in the form

The company has exposure by way of stuck bank guarantees of ~₹105 crore issued towards the projects, where the orders are cancelled, and it is in stages of arbitration. The above said BGs were issued in FY10 to FY13. The company has issued ~₹18.02 crore as margin money, the net liability is limited to ₹90 crore. Management is of the view, that most guarantees will be returned without adverse effect from the ongoing disputes. However, the issue is persistent and there is no positive movement on t

The company is in process of exiting from the CDR, for which it is engaged with the lenders. However, pending the approval of exit from few lenders, this is expected to delay. This pendency results in delay in enhancement of working capital limits, which restricts the company from bidding for work orders outside the group. Fragmented construction sector with tender-based operations and execution challenges The infrastructure sector in India is highly fragmented with many small and mid-sized play

The infrastructure sector in India is highly fragmented with many small and mid-sized players. This, and the tendering process in order procurement results in intense competition within the industry, fluctuating revenues and restrictions in profitability. The continued increase in execution challenges, including delays in land acquisition, regulatory clearances, aggressive bidding, interest rate risk, and delays in projects due to environmental clearance are other external factors that affect th

Improvement in scale of operations in FY25 and satisfactory profitability RIL has shown improvement in scale of operation marginally in FY25 to ₹2,094 crore (FY24: ₹2,044 crore) considering execution of orders on hand and the addition of new orders. PBILDT moderated slightly to ₹461 crore in FY25 from ₹498 crore in FY24 with a margin of ~22% (FY24: 24%). Profit after tax (PAT) stood at ₹265 crore in FY245 against ₹360 crore in FY24.

As on March 31, 2025, RIL has an outstanding orderbook of ₹7,800 crore (March 31, 2024: ₹8739 crore), which is ~3.72x of gross billing of FY25 which further indicates medium-to-long-term revenue visibility. As on March 31, 2024, ₹4533.09 crore (52.10%) of the orderbook consists of O&M income which will be realised in 15-20 years. Thus, the outstanding orderbook ₹4,186.21 crore (excluding O&M income) to gross billing of FY24 translates to 1.96x, which indicates medium-term revenue